Oman is a nation on the coastline of Arabian Peninsula, capturing a strategically significant position at the starting point in the Persian Gulf. Oman is a diversified economy but it majorly dependent on oil exploration. Petroleum, gas and other non-gas products are major export products. Due to rising demand and declining oil sites, Oman started exploring new fields to work.

Agriculture products like lime, dates, vegetables and grains are also exported to other countries. Another sector getting more emphasise is Tourism – a fast developing and more lucrative sector. It might become the biggest sector within the country. In long-term, it is expected to have some business reforms related to business in context to foreign ownership, PPP laws, small industries, and FDI.

Helpline Group is a government approved agency with ISO 9001-2008 certification

The company has branches spread across the world. Established in 1998, Helpline Group’s Head Office is in Dubai to serve our special clients in Kuwait and the Middle East region. With a strong clientele base from India, Kuwait and the rest of the Middle East, we currently enjoy a strong presence in these countries, especially in Kuwait.

Presently Oman is focusing on developing the infrastructure in the country, thus, business related to electricity and power, cement and desalinisation complexes will boom. So if one looks strategically, this time period is extremely good for those who want to invest in non-petroleum products or business supporting infrastructural growth.

Company Formation Steps in Oman

Finding A Partner

You need partnership and support from an Omani to get the fundamental licenses to work in the country. Helpline Group can guide you and help you gain an Omani partner.

Business Set-Up

Business set-up activities in Oman may change depending on the industry and type of company. Helpline Group can guide you and help you apply for business set-up.

License Registration

You may need to apply for additional licenses to begin operations of your business in Oman. Helpline Group can guide you and help you get these licenses in Oman.

Starting a business in Oman is not an easy task for individuals; one need help and guidance for it. We have strong knowledge about the local market and regulations, and we can help you achieve your company formation goals in Oman.

Helpline Group will take care of customer needs by matching their requirements with the governmental laws. We have been offering company formation support in the Middle East and India for the past 25 years.

Promise on Quality and Reliability

Our highest priority is in ensuring our commitments are met, and we deliver our promises on time. Hence, you can be assured that your company formation activities will be completed on time, as per your requirements.

Legal Structures of the Company

Foreign companies or individuals looking for a business in Oman are governed under Foreign Business and Investment Law of 1974, the Commercial Register law and the Commercial Companies Code of 1974. Under the Omani Foreign Business and Investment Law, foreign companies are allowed to start its business under the following forms:

Limited Liability Company (LLC)

Branch Office

Commercial Agencies

Representative Trade Offices

General Partnership Company

Limited Partnership Company

Holding Company

Shareholding Company or Joint Stock Company

Joint Venture

Limited Liability Company Formation in Oman

The most basic form of business operation is “Limited Liability Company”; it is also the most suitable form for starting a small business in Oman. In this type of business organisation, fixed capital is divided into equal shares. It must be registered under Commercial Register with Ministry of Commerce and Industry and it must also get affiliation from Chamber of Commerce and Industry. Helpline Group will assist in notarizing the documents, taking a license, hiring CPA or local attorney, application filling, etc. For company registration in Oman, a name is required to be registered with the Commercial Register (CR). Some of the basic features of LLC ownership in Oman are discussed below:

In a Limited Liability Company (LLC) Citizen is supposed to have at least 30% of ownership and foreign members cannot have more than 70% shares in the business.

US or GCC citizens can have full shares or 100% ownership in LLCs

The number of shareholders is limited to minimum two; each shareholder will be liable to the extent of their share value.

The maximum number of shareholders can be no more than 40 shareholders.

Share capital required to register is minimum OMR 20,000/- for wholly Omani, GCC and US owned companies and in case of foreign investment minimum is OMR 150,000/-

Public subscription for increasing investment base is not at all permitted.

A foreign manager is required to be hired to manage its day- to–day activity.

Operating business in the free zone is a way to have 100% shareholding or full ownership and no minimum capital requirement.

General Partnership Company in Oman

General Partnership is a form of business where two or more person comes under a contract to form a business. Business partners are jointly or severally liable for the conduct of business obligations to the full extent of member’s personal wealth. A general partnership can be formed between several people and this partnership is required to be registered under Commercial Register. While registering all the agreements between the partners are required to be mentioned.

Company name of a General Partnership Company should contain the name of one or more partners.

All the members are required to perform their part of work as specified in the agreement.

General Partnership Companies comes to an end when a new member is added or any member leaves the partnership.

General Partnership Company can also expire when the partnership term gets over.

Limited Share Partnership Company in Oman

In this type of partnership, two types of members are involved; General Partners involved in managerial practices of the business and Limited Partners who contribute in the capital of the company but not in the management related practices.

Minimum number of partners involved in this is two

LLPs have no limitation on a maximum number of partners.

Limited Partnership should be registered under the Commercial Register.

In a Limited Liability Partnership, General Partners are liable to their full extent of personal property but Limited Partners are

supposed to bear the liability to the amount of capital contributed by them.

Holding Company Formation in Oman

A Holding Company is a Limited Liability Company or a Joint–Stock Company. A Holding Company possesses control over financial and administrative decisions of one or more subsidiary companies. Holding company should have at least 51% of shares of its subsidiary companies. It is required to mention the company’s name as a “Holding Company” in all the all legal and formal documents. In Oman, it is essential that Holding Company should have more than Two million Omani Riyals towards Capital. A Holding Company in Oman can exercise the following powers:

It may manage its subsidiary company and even participate in managerial decisions.

It may make investments in share, securities, debentures and bonds.

It may grant credit and provide the fund to the subsidiary company.

It may own the rights, patents, trademarks of the subsidiary company and make decisions related to this.

Shareholding Company or Joint Stock Company in Oman

A Shareholding Company is also known as Joint Stock Company. A Shareholding Company is an association where a fixed capital is distributed over a specific number of shares. The nominal value of each share shall not be less than RO 1.000 (Rials Omani One only). The capital of the Joint-stock Company shall not be less than RO 500,000/- (Rials Omani Five Hundred Thousand only) for Companies which do not offer their shares for public subscription or SAOC written at the end of their names (Closed Omani Joint-Stock Company).

Capital investment shall not be less than RO 2,000,000/- (Rials Omani Two Million only) for Companies which offer shares for public subscription or SAOG written at the end of their names (General Omani Joint-Stock Company). The share of SAOC is subjected to other shareholders’ preemptive rights. The share of SAOG can be sold and trade freely to a third party and a minimum 40 per cent of the company’s stocks are issued for public subscription.

An Omani Shareholding company is required to work under Muscat Securities Market Law.

A Shareholding Company should also get registered under Commercial Register.

Prior approval for incorporating the business is required from the Ministry of Commerce and Industry in Oman.

A Shareholding Company should have more than 3 shareholders.

A minimum of 3 and a maximum of 12 Board of Directors are an essential requirement of a shareholding company.

Board of directors should act according to the power given to them under the contract, and they are liable to the company and its shareholders

Board of Directors should work under the legal restriction and make decisions in favour of the company and shareholders.

Joint Venture Formation in Oman

A joint venture is that form of business, which establishes a legal relationship between two or more parties without affecting the interest of the third party. As, in a joint venture, there is no legal relationship with the third party, hence, dissolution of the joint venture does not have any liability towards the third party until and unless the third party is having an agreement with any party involved in the joint venture. A joint venture must have at least two parties.

There is no specific limit for the maximum number of members in a joint venture.

Registration is not compulsory for joint ventures in Oman.

Joint ventures in Oman are required to define the rights of its members, objectives behind the joint venture and finally distribution of profit and loss among members.

The Joint venture can be dissolved when the term of the venture expires or project gets completed or all the objectives behind the joint venture are obtained.

In case of bankruptcy, losses are settled between the members and the venture come to an end.

Representative Trade Offices in Oman

Representative Trade Office comes under the regulation of Representative Office Regulatory Law. Representative trade offices deal in the services and production or manufacturing the products that have been mentioned in the contract by the parent company. It can only promote or provide services or market sales that are facilitated under the contract done by the parent company.

A representative trade office has several restrictions on their work.

A representative trade office cannot take credit or make an offer.

An authorised manager is required to work in the registered office.

Basic documentation required include certified copy of Commercial Registration Certificate, Certified copy of Article of Association (AOA) and the letter of undertaking.

Helpline Group can manage activities related to forming representative trade offices for you.

Commercial Agencies in Oman

A commercial agency is another way to operate a business in Oman. Here, foreign entities are required to have a contract with an Omani nationality holder or an Omani merchant or a commercial company in order to operate the business until and unless it’s a government contract or an activity related to a government project. The agent working under the business should also be registered with the Ministry of Commerce and Industry and a member of the Oman Chamber of Commerce and Industry.

A commercial agency should be registered under the Ministry of Commerce and Industry.

Any dispute between the principal and agent shall come under arbitration by the authority under the Settlement of Commercial Disputes.

Further queries related to how to start a business in Oman as Commercial Agent can be sorted out by just making a call to our representatives.

Branch Offices in Oman

A company can get full ownership or 100% shareholding by entering into a contract with a government entity or government-controlled entity and can conduct its business in Oman as a foreign branch. This way of investment is the most popular way to get full control over the business. In this type of business form, the parent company is having full control over the branch office, which does not need any local partner or any share capital. This makes parent company liable for all the activities of the branch office. All the related debts and other business liabilities are required to be fulfilled by the parent company.

Branch office’s validity is determined by the extent or validity of the contract

The contract period of a brand office depends on the length of time-limit of the project in Oman.

Branch office should only carry out the same business as it is carried out by the parent company.

Prior permission should be taken from the Ministry of Commerce and Industry to conduct any activity outside the parent company’s portfolio

For more information, you can contact Helpline Group experts.

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Other Factors You Should Consider for Qatar Business Formation

Real Estate

Policies related to real estate business in Oman are subjected to continuous amendments to make it easy for investors. Recently, Capital Market Authority announced a big change in the policy that allowed expatriate residents to get engaged in the real estate business. Capital Market Authority of Oman has issued an administrative decision regarding adopting executive regulations of Real Estate Investment Trusts (REITs) that allows every citizen, who is residing in Oman whether Omani national or expatriate to purchase a real estate share of development projects from the Muscat Security Market. This is similar to buying a share in the stock market. To know more about opportunities and regulatory requirements in real estate business or requirements, contact Helpline Group.

Taxation of Companies Registered in Oman

Tax policy in Oman is quite favourable in comparison with the rest of the world. Reasonable tax is charged in Oman as the corporate income tax is just 15%. Taxation policy totally depends on the structure of the company. Helpline Group can assist at all the stages of company formation in Oman along with registration for taxation and associated requirements. Our experts will advise about the best possible way to deal with tax reduction and its payment. Our experts know better about the treaties or exemptions prevailing in the market.

Visa System

Visa system in Oman is quite flexible and easy. It differs according to the need of the person or the business. A business visa can be obtained by the person easily by following several easy steps. Individuals are required to have a valid passport and its copy, which should have at least 6 months of validity. You might need a local sponsor to sponsor your visa; we will help you in finding this easily by our clientele base in Oman.

Importing System

The importing system in Oman requires several documentation steps and other legal requirements in order to import. A foreign importer in Oman is obliged to follow the country’s rules and regulations. For clearing the goods for import following things are required-

Commercial registration and form of activity or permission for importing, if such a form does not exist.

Affiliation Certificate from Oman Chamber of Commerce and Industry.

Valid Certification from the manufacturer.

Valid quotation and Packing list

Air and shipment bills related to import and other shipment documents.

Get in touch with Helpline Group today to take your goals further.

Our Company Formation Services are available in many countries. To know more about our services, please leave a message, stating your requirements on the left. Alternatively, you may contact us through either of the following methods. Helpline Group associates will contact you as soon as possible. We are also available in WhatsApp (Use the following numbers).